Reliant Logistics Institute


Japan planning to invest in the Chabahar Port Project


Japan’s Ambassador Kenji Hiramatsu has told that Japanese government is looking forward for the investment in Chabahar Port project with the Indian government. The port which named Chabahar is a seaport located in Southeastern Iran on the Gulf of Oman. As the India possess the rights to develop 2 berths out of total 10 berths and an investment of $85 million as equipment and $150 million as lend is allotted for 2 berths and 5 jetties by Indian Government, and in final total of $20 billion will be invested by India.

Ambassador has stated that “We are interested in connectivity projects and to make sure that this region is free and open and an important port like Chabahar is good for regional connectivity … I can’t tell when it will materialize, but we have expressed our interest” This investment helps to build trade and transit routes from the strategically located Iranian port into Afghanistan and Central Asia. This is a breakthrough for the southern ports such as Kochi, Mangalore and Gujarat, helps in the growth of logistics and shipping industry.

Why Japan gets motivated for doing investment in Chabahar Port project?

Japan is planning to invest in this project as project’s economic viability as well as the strategic value. The main reason is Japan is depending mainly on hydrocarbon importing from Persian Gulf. Japan’s 80% requirement is imported and from them since they are the prime exporters, so Tokyo’s prime agenda is to strengthen its ties with Iran which is an oil producing nation. It’s also a part which is against the ongoing China-Pakistan economic corridor (CPEC) which became a threat to sovereignty to India. Chabahar port and the CPEC’s Gwadar port has only 72km distance between them. When we look through Chabahar with other ports in Pakistan, Sri Lanka and Bangladesh makes military diplomatic area in world’s map.

Outcomes in the future

Chabahar port is considered as an alternative for logistics and shipping management services between India and Afghanistan. Since the development has started most of the logistics and supply chain business has shifted from Karachi port to Chabahar. Japan’s financial support to India is a flagship program for strengthening the bonds between two nations and for the extended support in Asia-Pacific region. In means of counter terrorism Japan’s keen interest is to provide security social and political issues. Logistics trade with Russia, Afghanistan, Iran, Europe and Central Asia is expected to increase comparing to Pakistan, when India’s trade route get established with these countries. Japan investment not only facilitates in terms of money, they may be having exchange in technology within the workforce for increasing the productivity.



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